“We continue to target combustible gross margin expansion organically and in dollar term for the year despite slower pricing and weaker volume in H2.”

In context

“unched in Japan and other markets. We expect strong margin to continue in H2, albeit without the device year on year comparison benefit, as we also further expand the presence of Illuma Eye across markets and bonds in Indonesia. Converseable net revenues increased by plus 2.9% or more than 5% excluding the Indonesia technical impact. Gross profit grew by plus 5%, driving plus 140 basis points of margin expansion. Despite the financial impact of the Turkey disruption. This includes a robust Q2 with organic net revenue growth of plus 2% and gross profit growth of plus 4.8%. This performance epitomized the resilience of our ongoing combustible business model with low single digit volume declines, robust pricing and efficiencies combining to deliver top line and gross profit growth over time. We continue to target combustible gross margin expansion organically and in dollar term for the year despite slower pricing and weaker volume in H2. The combination of sustained smoke-free momentum and combustible resilience led to plus 15.4% H1 organic OI growth at total PMI level resulting in plus 250 basis points of operating income margin expansion to surpass 41%. H1 net revenue growth of plus 8.4% was again fueled by the three engines of our top line growth model. With positive volumes, robust pricing, and favorable smoke remix. Pricing contributed plus 5.2 points driven by convertible pricing of plus 7.7% and low single digit smoke-free pricing excluding devices. The positive mix impact of rapid SFP growth drove further contribution of plus 3.1 points. Combustible geographic mix and other factors had an unfavorable impact of 2.4 points including the Indonesia technical impact of around 1.5 points. Currency had a negative impact”